Homes in market towns cost £23,000 more

Homebuyers typically spend nearly £23,000 more to live in a market town in England, according to Lloyds TSB. House prices in market towns across England are, on average, 11% higher than their county average, while the average house price (£235,719) is more than six times average gross annual earnings.

In fact this house price premium has risen very sharply from £11,691 in 2002 when the average house price in market towns was £132,870, compared with an average of £121,179 for their county.

Just over 60% of market towns have a higher average house price than their county average. Beaconsfield in Buckinghamshire has the largest premium with houses at 163% above the average house price in the county. Bakewell has the next highest premium, 123% above the Derbyshire average, followed by Wetherby where properties cost almost twice as much (96%) compared with West Yorkshire as a whole.

Nine of the 10 most expensive market towns are in southern England. Beaconsfield is also the most expensive market town in England with an average house price of £810,704. Winchcombe in Gloucestershire (£405,590) and Tenterden in Kent (£377,293) are the next most expensive. Bakewell is the most expensive market town outside southern England with an average property value of £353,029.

Ferryhill in Durham is the least expensive market town in England with an average house price of £75,011. Ferryhill is also the only town in the survey with an average house price below £100,000.

Many of the largest prices increases in the past decade have been in market towns in northern England, with nine of the 10 top performing towns being in the north. The biggest increase was in Seahouses in Northumberland where the average price rose by 134% from £79,240 to £185,259.

Nitesh Patel, housing economist at Lloyds TSB, said: “Home buyers are attracted to the high quality of life, architecture, history, setting and community spirit typically associated with market towns and are accordingly prepared to pay a premium to live in them. Market towns are often particularly desirable for those looking to move out of urban areas and into more idyllic surroundings without sacrificing many of the valued amenities they currently enjoy.”